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    Hero Honda

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    Vaishnavi Suthrai
    Hero Honda Motors Ltd is a joint venture between Hero Group of India and Honda of Japan. It is the world's largest manufacturer of two-wheeler vehicles, selling over 3.28 million bikes in 2008-2009. The company's most popular model is the Hero Honda Splendor, which sells over 1 million units annually. However, Honda has announced plans to set up a subsidiary in India and has established partnerships with other manufacturers, leaving Hero out, which threatens the future of the joint venture.

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    Hero Honda

    Uploaded by

    Vaishnavi Suthrai
    235 views17 pages
    Hero Honda Motors Ltd is a joint venture between Hero Group of India and Honda of Japan. It is the world's largest manufacturer of two-wheeler vehicles, selling over 3.28 million bikes in 2008-2009. The company's most popular model is the Hero Honda Splendor, which sells over 1 million units annually. However, Honda has announced plans to set up a subsidiary in India and has established partnerships with other manufacturers, leaving Hero out, which threatens the future of the joint venture.

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    Hero Honda Motors Ltd is a joint venture between Hero Group of India and Honda of Japan. It is the world's largest manufacturer of two-wheeler vehicles, selling over 3.28 million bikes in 2008-2009. The company's most popular model is the Hero Honda Splendor, which sells over 1 million units annually. However, Honda has announced plans to set up a subsidiary in India and has established partnerships with other manufacturers, leaving Hero out, which threatens the future of the joint venture.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    235 views17 pages

    Hero Honda

    Uploaded by

    Vaishnavi Suthrai
    Hero Honda Motors Ltd is a joint venture between Hero Group of India and Honda of Japan. It is the world's largest manufacturer of two-wheeler vehicles, selling over 3.28 million bikes in 2008-2009. The company's most popular model is the Hero Honda Splendor, which sells over 1 million units annually. However, Honda has announced plans to set up a subsidiary in India and has established partnerships with other manufacturers, leaving Hero out, which threatens the future of the joint venture.

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    Strategic Management

    Introduction
    Hero Honda Motors Ltd; based in Delhi,
    India is a joint venture between Hero
    Group of India & Honda of Japan.
    It is been referred as worlds biggest
    manufacturer of 2 wheeler motorized
    vehicles since 2001, when it produced 1.3
    million motorbikes in a single year.
    During Fiscal year 2008-09, the company
    had sold 3.28 million bikes and the netprofit stood up at `1281.7 crore.
    2

    Introduction
    The Company has its most popular model
    Hero Honda Splendor, which is the worlds
    largest-selling motorcycle (sold more than
    1 million units per year).
    Other than splendor, the company has
    launched its bikes in different models &
    looks with new innovation & technology.
    3

    Diversification
    The Group Chairman, Mr.Brijmohanlal Munjal
    has actively looked at diversification.
    A considerable level of vertical integration in
    its manufacturing activities has been
    present in the Groups growth & led into
    establishment of the Hero Cycles Cold
    Rolling Division, Munjal & Sunbeam
    Castings, Munjal Auto Components.
    4

    Models of Hero Honda

    Achiever
    Ambition 135
    CBZ, CBZ Xtreme
    CD 100, CD deluxe, CD dawn
    Glamour
    Hunk
    Karizma, Karizma R, Karizma ZMR F1
    Passion, Passion+, Passion Pro
    Pleasure
    Splendor
    5

    Company Profile
    Hero is the brand name used by the
    Munjal brothers for their flagship company
    Hero Cycles Ltd. A joint venture between
    the Hero Group and Honda Motor Company
    was established in 1984 as the Hero Honda
    company, India.

    Company Profile
    During the 1980s, the company introduced
    motorcycles that were popular in India for
    their fuel economy and low cost. A popular
    advertising campaign based on the slogan
    'Fill it - Shut it - Forget it' that
    emphasized the motorcycle's fuel
    efficiency helped the company grow at a
    double-digit pace since inception.
    7

    Mission
    Hero Hondas mission is to strive for
    synergy between technology, systems and
    human resources, to produce products
    and services that meet the quality,
    performance and price aspirations of its
    customers.
    At the same time maintain the highest
    standards of ethics and social
    responsibilities.
    8

    Mission
    This mission is what drives Hero Honda to
    new heights in excellence and helps the
    organization forge a unique and mutually
    beneficial relationship with all its stake
    holders.

    Problems & Issues


    Joint Venture Problems:Honda Motor Company Ltd. announced it
    was setting up a subsidiary.
    The development of the CD-100
    motorcycle was only successful for a
    very short period of time .
    Honda held complete responsibility for the
    Research & Development department for
    Hero Honda.
    Honda negotiated new ventures and
    partnerships with other Indian
    manufacturers in the automobile and
    power equipment industry, leaving Hero
    completely out.

    10

    SWOT Analysis
    Strengths
    Ability to understand customers
    needs and wants.

    Recognized and established brand


    name.
    Effective advertising capability.
    11

    Weaknesses
    R&D is not close to the Hero
    manufacturing plant
    Hero is vulnerable in the joint
    venture because Honda Motor
    Company has so much power.

    12

    Opportunities
    1.Global expansion into the Caribbean
    and Central America.

    2.Expansion of target market


    (include women).
    3.Become Indias leader in the
    scooter market.
    13

    Threats
    Bajaj Motors is a strong competitor.
    Honda Motorcycles and Scooters
    India can take away market share
    and cause joint venture to go sour.

    14

    Hero Honda to Split


    Hero Honda is a joint venture
    motorcycle company in India since 25
    years.
    This venture has been extremely
    successful in the production of 2
    wheelers in India.
    But, Honda also established its
    independent Motorcycle & Scooter
    company.
    15

    Hero Honda to Split


    As this has been a shadow to the
    joint venture of Hero Honda.
    Honda is now a leading seller of
    scooters in India, with its attractive
    offerings such as Honda Activa,
    Honda Aviator & Honda Eterno.
    It also offers bikes such as Honda
    Unicorn, Honda CB Twister etc.
    16

    Major Competitors

    Bajaj Auto
    TVS Motors
    Mahindra scooters
    LML
    Kinetic Motors
    Honda
    17

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